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Industrial License in Dubai
With due credit to globalization, the manufacturing and production industry in the UAE has grown at an unprecedented rate due to which it is suggested to have an industrial license in Dubai. A massive tourist attraction and a country with several ports; the UAE’s strategic location has allowed for several businesses with an industrial license to flourish.
Industrial or manufacturing companies wanting to carry out business operations in the UAE are required to apply for an industrial license. The industrial license in Dubai is issued to establishments that are involved in the manufacturing or producing of new products, in the conversion of resources, or the alteration of natural/raw materials. Under this license type, or within this sector, these raw materials could be transformed with the help of a manual or automatic machine; and the result of the product must be a semi or fully manufactured product.
Though the main governing body of the industrial license is the Department of Economic Development, depending on the business activities and safety precautions required, you may need to seek approval from a few other government entities.
These procedures require you to hire trusted business advisors. Our team of experienced consultants are dedicated to assisting you with all your business-related issues. We’ve assisted with setting up hundreds of businesses in the industrial sector over the years – making us the perfect fit for your business as well! Book a free consultation call with us and let us help you get an industrial license in Dubai.
Activities involved
The industrial sector in the UAE has greatly increased within the last few years. Some of the major activities that are carried out across the industrial area in UAE are;
- Textile manufacturing
- Home appliances and machinery manufacturing
- Oil and gas extraction
- Woodwork and furniture manufacturing
- Food and drinks production
- Glass industries
- Metal-casting
- Vehicles and aircraft manufacturing
- Plastic products manufacturing
- Tobacco and cigarettes production
- Paper good production
- Collection and treatment of waste
Activities that require special permission
The UAE has put forth a great system to ensure the safety of all those residing in the country. Since the operations within a business under the commercial license happen at such a large scale; it’s crucial to obtain licenses from concerned authorities so that your activities take place in a safe setting.
- If you plan on setting up a business that deals in the manufacturing of any edible goods, you need to seek approval from the Food Safety Department in order to legalize your operations. Regardless of whether you deal in the packaging, refining, production, or manufacturing of said food items, a valid approval is necessary.
We can guide you to get the right approvals from the right government entities to ensure your application moves forward smoothly. Business Link’s experts are available to be your guiding light!
Things to keep in mind
The pointers of an industrial license are much different than that of other licenses – given the scale at which business takes place here. If you’re looking to start a business with an industrial license in Dubai, these are the key factors to keep in mind:
- To successfully get an industrial license, you must own a warehouse in the emirate in which you’re issued a license by the DED
- You must have at least 10 employees or workers.
- As for machinery, all machines you use in your warehouse or factory must be a minimum of 5 Horsepower.
- You’re required to have a capital of at least AED 250,000.
- If you're looking to set up a business with an industrial license in the free zone, JAFZA and DMCC are free zones fit for an industrial license.
Benefits of an industrial license in Dubai
Owning and operating an industry in the UAE is already massively beneficial, given the unique location it’s positioned in, connecting the east and the west. Along with this, the UAE also provides investors with excellent perks to prolong their investments within the country, while also making business easier for them. These perks are;
- The UAE Free Zones are tax-free areas for factories and warehouses
- Unparalleled access to logistical support and transportation services
- Affordable labor costs
- Discounts applied to electricity, water, and other essentials.
- If your manufactured products are expected to strengthen the economy of the country, you will receive financial support for the same.
- If your product is unique in nature, you may be entitled to receive loans at a reduced rate.
- Terms and conditions for resting space for industries and warehouses are made specially to benefit the business owner.
How can you obtain an industrial license?
The process of an industrial license is relatively lengthier than that of other licenses, but with Business Link, these processes can be more manageable.
Your first step is to provide a business plan or overview that explains the sort of business you’re trying to establish. This is important as the process of obtaining an industrial license is generally unique in some cases – given the nature of the business. With a business plan in mind, our consultants can guide you better in terms of what approach to undertake.
If you plan on setting up a business in the Mainland, the DED will be the main governing body of your business and the issuance of your license. However, for free zone companies, you need to approach the respective Free Zone Authority.
Once you obtain the initial approval for your business, you can proceed to submit the following documents, with all necessary approvals in place;
- Residence visa copy
- Passport copy (if the investor is not a resident of the UAE)
- Power of Attorney (if the investor is not present in UAE, they may submit a virtual PoA)
- 3 proposed trade names
- Warehouse location
- Ejari
- Dubai Municipality approval
- Civil Defence approval
Along with this, depending on the nature of your business and what you’re manufacturing, you will be required to get approvals from relevant authorities in order to legally proceed with your application.
With the submission of the above the governing body will issue your industrial license. If everything is submitted as required, you may be able to receive your license in as little as a month. Along with your license, as the investor, you will be issued an Immigration Card and if your business requires employees, they will be issued Labor Cards.
Our experts have designed the perfect layout that takes your business vision from the planning stage to the end product. We are committed to assisting our clients through each step carefully to not leave room for hindrances and delays in your application process.